740.00119 FEAC/1–1349: Telegram
The Acting Secretary of State to the Acting Political Adviser in Japan (Sebald)
13. Subj Summary FEC Mtg Jan 6, 1949.
Econ Stabilization in Japan ( FEC 329/3). In reply rptd Sov inquiries re nature program US member indicated objectives program expressed in directive and Comm would be kept informed developments.
Chi and Phil Members pointed out in their view fol statement incl US reply to Aust Member was not consistent with FEC policy on Determination Peaceful Needs of Japan.1
“Raw material shortages and difficulties in finding markets for manufactured output will make most difficult for Japan exceed 1930–34 levels even with maximum effort on part Japanese. Yet unless those production levels reached and even some cases surpassed due to population technological and trade pattern changes Japan will not be self supporting and deficits will fall upon US taxpayer.”
US Member referred to last para policy decision which provides:
“Acceptance above policy should not be interpreted mean acceptance in advance of specific level for any particular industry.”
Labor Policy in Japan ( FEC 318/10). US Member indicated not yet in position give views his Govt on NZ inquiry. USSR Member insisted vote be taken on his proposal. Aust NZ Canad Indian Phil French Members indicated would vote against Sov proposal grounds it was inappropriate but their vote without prejudice to their views [Page 620] on long term legis recently passed by Diet. Chi Member stated would abstain grounds Sov proposal unnecessary. Sov proposal defeated vote 9 opposed 1 favor 1 abstention.
USSR member made statement effect countries opposing Sov proposal were supporting anti demo policies American milit auth in Japan and violating Potsdam Declaration and decisions on democratization of Japan adopted by FEC.
NZ Phil Aust Members pointed out Sov statement contrary facts and should it be issued to press Comm also should issue statement.
Comm agreed despite disapproval Sov proposal subj of Labor Policy in Japan should be kept on agenda.
Reparations Removals: Accessory Facilities Buildings Technical Data ( FEC 299/5).
Phil Member raised question of “buildings” pointing out buildings such design available only for specific purposes and conversion of which impossible should be made available as reparations. He noted critical shortage steel for buildings in Phil and need such buildings adding he could support Chi amendment para 2.
- FEC–106, January 23, 1947, Department of State, Activities of the Far Eastem Commission, p. 85.↩